Lendlease Group · ASX:LLC
Lendlease — FY2017 Earnings Presentation
84 slides from Lendlease's earnings presentation, Aug 28, 2017
Slide 1: Lendlease FY17 Full Year Results Announcement, Presentation and Appendix
28 August 2017 For personal use only Lendlease Group FY17 Full Year Results Announcement, Presentation and Appendix Lendlease Group today announced its results for the full year ended 30 June 2017. Attached is the FY17 Results Announcement, Presentation and Appendix. ENDS FOR FURTHER INFORMATION, PL
Slide 2: Lendlease delivers strong earnings growth
28 August 2017 Lendlease delivers strong earnings growth For personal use only For the full year ended 30 June 20171: Profit after Tax of $758.6 million, up 9 per cent and earnings per stapled security of 130.1 cents, up 8 per cent Return on Equity of 12.9 per cent2, towards upper end of 10-14 p
Slide 3: Group financials and outlook
28 August 2017 The business achieved strong completions in construction including New York’s tallest residential For personal use only tower and several high profile and large scale social infrastructure projects in Australia. These included International Convention Centre Sydney, and Sunshine Coast
Slide 4: Recurring earnings and key dates for investors
28 August 2017 A solid base of recurring earnings is derived from the $3.3 billion of investments and the funds and For personal use only asset management platforms. “We are progressing well in the residential for rent sector with three buildings in delivery in the Americas as well as identified bui
Slide 5: Lendlease 2017 Full Year Results
For personal use only Lendlease 2017 Full Year Results 28 August 2017
Slide 6: Indigenous engagement and reconciliation
LENDLEASE – FY17 FINANCIAL RESULTS 2 Indigenous engagement and reconciliation For personal use only Lendlease’s vision for Reconciliation is one in which all our employees acknowledge and celebrate the proud heritage of Australia’s First Peoples and promote opportunities for career development, sust
Slide 7: Contents
LENDLEASE – FY17 FINANCIAL RESULTS 3 Contents For personal use only Topic Speaker Slide Group Performance and Steve McCann 4 Results Highlights Group Chief Executive Officer and Managing Director Tarun Gupta Financials 10 Group Chief Financial Officer Steve McCann Operational Update 16 Group Chief E
Slide 8: Group Performance and Results Highlights
For personal use only Section 1 Group Performance and Results Highlights Steve McCann Group Chief Executive Officer and Managing Director Image: International House Sydney, Barangaroo South, Sydney
Slide 9: Safety
LENDLEASE – FY17 FINANCIAL RESULTS 5 Safety For personal use only Lendlease is saddened to report two fatalities occurred during FY17 on our operations in Australia, and unfortunately another fatality has occurred in New York post year end. We express our sincere condolences to the families and frie
Slide 10: Vision: to create the best places
LENDLEASE – FY17 FINANCIAL RESULTS 6 Vision: to create the best places For personal use only Strategic framework Business model Competitive advantage Pillars of value
Slide 11: Lendlease delivers strong earnings growth
LENDLEASE – FY17 FINANCIAL RESULTS 7 Lendlease delivers strong earnings growth For personal use only Securityholder returns1 • Profit after Tax of $758.6 million, up 9%, and earnings per stapled security of 130.1 cents, up 8% • Full year distributions of 66 cents per security, representing a dividen
Slide 12: FY17 Achievements: Execution excellence across our portfolio
LENDLEASE – FY17 FINANCIAL RESULTS 8 FY17 Achievements Execution excellence across our portfolio For personal use only • Residential apartment unit completions – significant increase in delivery, more than double the prior year • Australian office leasing underpinned forward sales/development JV – m
Slide 13: FY17 Achievements: Laying the foundations for future growth
LENDLEASE – FY17 FINANCIAL RESULTS 9 FY17 Achievements Laying the foundations for future growth For personal use only • Significant progress in converting urbanisation projects in gateway cities: ̶ Four additional cities with projects in delivery: Chicago, Boston, New York, Kuala Lumpur ̶ Two new ci
Slide 14: Financials
For personal use only Section 2 Financials Tarun Gupta Group Chief Financial Officer Artist impression: Tun Razak Exchange, Lifestyle Quarter, Kuala Lumpur
Slide 15: Financial performance
LENDLEASE – FY17 FINANCIAL RESULTS 11 Financial performance For personal use only $ million FY16 FY17 Change Development 500.2 552.4 10% • Significant contribution from Australia, ongoing investment offshore Construction 288.1 338.3 17% • Solid improvement, strong recovery in the Americas Investment
Slide 16: Cash flow movements
LENDLEASE – FY17 FINANCIAL RESULTS 12 Denotes major movements Cash flow movements ($b)1 For personal use only Barangaroo Commercial $1.3b Urbanisation ($3.3b) Other urbanisation $2.2b Communities ($0.5b) Communities $0.5b International urbanisation ($0.2b) Barangaroo Commercial – Tower 1 ($0.1b) Ret
Slide 17: Financial position
LENDLEASE – FY17 FINANCIAL RESULTS 13 Financial position For personal use only $ million 30 Jun 16 30 Jun 17 Assets Key areas of capital employed Cash and cash equivalents 1,008.4 1,249.2 • Development inventories of $4.1 billion Inventories 4,602.9 5,127.4 • Investments of $3.3 billion3 including:
Slide 18: Portfolio Management Framework
LENDLEASE – FY17 FINANCIAL RESULTS 14 Portfolio Management Framework For personal use only EBITDA mix Invested capital By segment By region 24% 10% 12% $6.3b2 52% $6.7b3 8% $1.4b1 48% 40% 36% 70% Development Construction Investments Development Investments Australia Asia Europe Americas Target weigh
Slide 19: Portfolio Management Framework: ROE, distributions, gearing
LENDLEASE – FY17 FINANCIAL RESULTS 15 Portfolio Management Framework For personal use only Return on equity (ROE)1 Distributions 18.2%2 cents Target 40 – 60% Target 10 – 14% 80 70% 70 60% 13.6% 13.0% 60 12.4% 12.9% 50% 50 33 492 30 40 27 40% 30 20 30% 20 27 30 33 20% 10 22 22 0 10% FY13 FY14 FY15 FY
Slide 20: Operational Update
For personal use only Section 3 Operational Update Steve McCann Group Chief Executive Officer and Managing Director Artist impression: Riverline, Chicago
Slide 21: Development
LENDLEASE – FY17 FINANCIAL RESULTS 17 Development 40% of operating For personal use only Performance highlights1 Commercial building completion profile4 ($b) EBITDA • ROIC of 13.7%, above target range By estimated total end value Paya Lebar Quarter Office and Retail, Singapore, • Over 90,000 square
Slide 22: Construction
LENDLEASE – FY17 FINANCIAL RESULTS 18 Construction 24% of operating For personal use only Performance highlights1 EBITDA ($m) EBITDA • Global EBITDA margin up 30 bps to 2.7% FY16 FY17 • Six major building project completions in excess of 338 c.$6 billion 288 232 • Australian margin impacted by perfo
Slide 23: Investments
LENDLEASE – FY17 FINANCIAL RESULTS 19 Investments 36% of operating For personal use only Performance highlights1 Investments EBITDA by activity ($m) EBITDA • ROIC of 11.7%, above target range, driven by solid FY16 FY17 performance in Australia 379 • Ownership earnings derived from investments increa
Slide 24: Outlook
For personal use only Section 4 Outlook Steve McCann Group Chief Executive Officer and Managing Director Artist impression: Elephant Park, London
Slide 25: Outlook
LENDLEASE – FY17 FINANCIAL RESULTS 21 Outlook For personal use only • Well positioned for future success: ̶ Earnings visibility from extensive pipeline across our business segments ̶ Financial strength and resilient business model with diversity across segments, sectors and geographies • Diversifyin
Slide 26: Earnings visibility from strong pipeline across all segments
LENDLEASE – FY17 FINANCIAL RESULTS 22 Earnings visibility from strong pipeline across all segments For personal use only Development pipeline of Construction backlog revenue of FUM of $49.3 billion $20.6 billion $26.1 billion Development pipeline Construction backlog revenue Funds under management (
Slide 27: Q&A
For personal use only Section 5 Q&A Steve McCann Group Chief Executive Officer and Managing Director Tarun Gupta Group Chief Financial Officer Dan Labbad Chief Executive Officer, International Operations Image: Pacific Highway – Nambucca to Urunga, NSW
Slide 28: Appendix
For personal use only Appendix Image: International Convention Centre Sydney
Slide 29: Group
For personal use only Group 2
Slide 30: Our business model
LENDLEASE – FY17 FINANCIAL RESULTS 3 Our business model Our business model is how we generate earnings. The model is integrated when more than For personal use only one segment is engaged on a single project DEVELOPMENT Core Financial Returns: The Development segment is involved in the development o
Slide 31: Income Statement
LENDLEASE – FY17 FINANCIAL RESULTS 4 Income Statement For personal use only Income Statement ($ million) Jun-16 Jun-17 Revenue 15,088.5 16,659.0 Cost of sales (13,388.5) (14,841.0) Gross profit 1,700.0 1,818.0 Share of profit of equity accounted investments 151.6 77.9 Other income 256.9 247.2 Other
Slide 32: Statement of Financial Position
LENDLEASE – FY17 FINANCIAL RESULTS 5 Statement of Financial Position For personal use only Statement of Financial Position ($m) Jun-16 Jun-17 Statement of Financial Position ($m) Jun-16 Jun-17 Current Assets Current Liabilities Cash and cash equivalents 1,008.4 1,249.2 Trade and other payables 4,328
Slide 33: Statement of Cash Flows
LENDLEASE – FY17 FINANCIAL RESULTS 6 Statement of Cash Flows For personal use only Statement of Cash Flows ($ million) Jun-16 Jun-17 Cash Flows from Operating Activities Cash receipts in the course of operations 16,028.4 16,254.6 Cash payments in the course of operations (15,154.9) (15,928.7) Intere
Slide 34: Securityholder returns
LENDLEASE – FY17 FINANCIAL RESULTS 7 Securityholder returns For personal use only Return on equity (ROE)1 Distributions cents 2 18.2% 80 70% 70 60% 13.6% 13.0% 12.9% 60 12.4% 2 50% 50 33 49 30 40 27 40% 30 20 30% 20 30 33 27 20% 10 22 22 0 10% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Interi
Slide 35: Segment financial metrics
LENDLEASE – FY17 FINANCIAL RESULTS 8 Segment financial metrics For personal use only Operating Profit after Tax ($m) EBITDA ($m) FY16 FY17 FY16 FY17 397.8 552.4 366.4 370.7 381.4 500.2 495.3 457.7 338.3 211.7 288.1 190.9 Development Investments Construction Development Investments Construction ROIC1
Slide 36: Segment and region financial metrics
LENDLEASE – FY17 FINANCIAL RESULTS 9 Segment and region financial metrics For personal use only By segment Revenue ($m) EBITDA ($m) Profit After Tax ($m) Invested Capital ($b) FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 Development 2,543.9 3,433.0 500.2 552.4 366.4 397.8 2.9 3.0 Investments 510.5 566.7
Slide 37: Revenue and EBITDA by segment and geography
LENDLEASE – FY17 FINANCIAL RESULTS 10 Revenue and EBITDA by segment and geography For personal use only ($m) Revenue EBITDA EBITDA by segment ($m) FY16 FY17 FY16 FY17 Development Australia 2,034.4 3,142.0 391.5 497.8 1,600 FY16 FY17 Asia 17.5 19.6 (19.1) (13.5) 1,400 Europe 431.7 203.6 139.5 68.3 Am
Slide 38: Revenue and EBITDA by segment and geography, local currency
LENDLEASE – FY17 FINANCIAL RESULTS 11 Revenue and EBITDA by segment and geography, local currency Asia For personal use only EBITDA, local currency (m) Local currency Revenue EBITDA FY16 FY17 FY16 FY17 FY16 FY17 Asia (SGDm) 50 Development 17.7 20.6 (19.3) (14.2) 30 Construction 337.5 527.7 (5.7) (0.
Slide 39: Exchange rates
LENDLEASE – FY17 FINANCIAL RESULTS 12 Exchange rates For personal use only Income Statement Statement of Financial Position Local Foreign FY161 FY172 Local Foreign FY163 FY174 AUD USD 0.73 0.76 AUD USD 0.75 0.77 AUD GBP 0.50 0.60 AUD GBP 0.56 0.59 AUD SGD 1.01 1.05 AUD SGD 1.00 1.06 FX Sensitivity U
Slide 40: Regional EBITDA to PAT reconciliation
LENDLEASE – FY17 FINANCIAL RESULTS 13 Regional EBITDA to PAT reconciliation For personal use only FY17 EBITDA to PAT Reconciliation Region EBITDA Net Interest D&A1 PBT Tax Non Cont. Int.2 PAT Australia Development 497.8 1.2 (1.4) 497.6 (149.5) - 348.1 Construction 201.4 0.3 (26.4) 175.3 (50.4) - 124
Slide 41: Debt metrics
LENDLEASE – FY17 FINANCIAL RESULTS 14 Debt metrics For personal use only Jun-16 Jun-17 Net debt $ million 1,052.0 912.8 Borrowings to total equity plus borrowings % 26.6 25.9 Net debt to total tangible assets, less cash % 6.5 5.0 Interest coverage1 times 8.0 10.3 Average cost of debt including margi
Slide 42: Debt facilities and maturity profile
LENDLEASE – FY17 FINANCIAL RESULTS 15 Debt facilities and maturity profile For personal use only Debt facilities ($m)1 Drawn Facility 1,500 678 505 505 514 514 476 476 259 259 281 281 76 33 33 Syndicated Multi- UK Bond Issue Club Revolving US $ Reg. S US Private Singapore Singapore Australian Option
Slide 43: Key dates for investors
LENDLEASE – FY17 FINANCIAL RESULTS 16 Key dates for investors For personal use only Date FY17 results released to market/final distribution declared 28 August 2017 Securities quoted ex-dividend on the Australian Securities Exchange 1 September 2017 Final distribution record date 4 September 2017 Fin
Slide 44: Development
For personal use only Development 17
Slide 45: Development FY17
LENDLEASE – FY17 FINANCIAL RESULTS 18 Development FY17 For personal use only Overview Performance • Involved in the development of communities, inner city mixed use FY16 FY17 developments, apartments, retirement, retail, commercial assets and % Operating EBITDA 40 40 social and economic infrastructu
Slide 46: Development earnings / pipeline
LENDLEASE – FY17 FINANCIAL RESULTS 19 Development earnings / pipeline For personal use only EBITDA by geography ($m) Development pipeline by geography ($b) FY16 FY17 48.8 49.3 FY16 FY17 552.4 497.8 500.2 391.5 29.0 30.9 139.5 10.5 8.0 68.3 5.9 6.1 3.4 4.3 (19.1) (13.5) (11.7) (0.2) Australia Asia Eu
Slide 47: Residential development
LENDLEASE – FY17 FINANCIAL RESULTS 20 Residential development Communities and Retirement (completions by state)1 FY17 Apartment completions4,5 For personal use only FY16 FY17 Units $m Units $m Units $m Australia Communities QLD 1,527 275 1,314 264 Victoria Harbour – 888 Collins 445 287 NSW 2 761 302
Slide 48: Commercial development
LENDLEASE – FY17 FINANCIAL RESULTS 21 Commercial development For personal use only Commercial completions Est end value2 Sqm City Project Building Sector Deal type1 ($m) (‘000) FY17 Sydney Barangaroo South Tower One Office Fund Through 2.0 102 Sydney Barangaroo South International House Office Fund
Slide 49: Residential presales and apartments for rent
LENDLEASE – FY17 FINANCIAL RESULTS 22 Residential presales and apartments for rent1 For personal use only Apartments2 By units By value $m 723 786 (251) 1,373 1,635 512 850 (1,817) 228 42 210 40 850 (2,533) 1,124 Presales Presales Presales 3,874 5,247 Presales 4,279 4,167 3,902 5,914 2,793 2,782 FY1
Slide 50: Apartment presales – by location and customer
LENDLEASE – FY17 FINANCIAL RESULTS 23 Apartment presales – by location and customer For personal use only Apartments for sale – presales (by value, as at 30 June 2017)1 Run-off profile by location2 By customer 51% 39% FY18 FY19 13% Local 23% China Other offshore 20% 18% 64% 15% 12% 12% 8% 7% 3% 3% 1
Slide 51: Development pipeline provides long term earnings visibility
LENDLEASE – FY17 FINANCIAL RESULTS 24 Development pipeline provides long term earnings visibility1 Estimated Record secured pipeline of $49.3b controlled by invested capital of $3.0b For personal use only annual Apartments turnover4 21 major apartment buildings in delivery, across 3,177 presold unit
Slide 52: Major project summary
LENDLEASE – FY17 FINANCIAL RESULTS 25 Major project summary For personal use only Total Expected Residential Commercial Project Delivery remaining Project completion backlog backlog sqm2 secured commenced end value date 1 (units) (‘000) ($b)4 Barangaroo South, Sydney 2009 2012 2023 775 13 3.5 Victor
Slide 53: Apartment projects in delivery – completion profile
LENDLEASE – FY17 FINANCIAL RESULTS 26 Apartment projects in delivery – completion profile1 For personal use only Ownership Pre sold Units Pre-sales Completion Project City Building Total Units (%) (%) Pre sold1 Revenue1 ($m) Date2 Residential for sale Darling House 100 334 100 334 402 FY18 Darling N
Slide 54: Major commercial development pipeline
LENDLEASE – FY17 FINANCIAL RESULTS 27 Major commercial development pipeline Commercial building completion profile1 For personal use only City Project Capital model sqm ('000) Building Completion date 3 Kuala Lumpur Tun Razak Exchange Joint Venture 154 Retail FY21 3 84 Commercial (3 buildings) FY19
Slide 55: Communities and Retirement projects
LENDLEASE – FY17 FINANCIAL RESULTS 28 Communities and Retirement projects For personal use only Communities Residential Commercial Include Horizon in this …. Estimated Backlog Backlog Project Location Ownership Interest Completion Land Units2 sqm / ‘000s3 Date1 Bingara Gorge NSW Land management 2025
Slide 56: Development deal structuring tailored to local market
LENDLEASE – FY17 FINANCIAL RESULTS 29 Development deal structuring tailored to local market For personal use only Urbanisation Communities / Retirement Apartments Commercial JV Structure / LP-GP1 (Australia, Europe) Forward Sale • Barangaroo (ITS), Sydney • Paya Lebar Quarter, Project • Jordan Sprin
Slide 57: Construction
For personal use only Construction 30
Slide 58: Construction FY17
LENDLEASE – FY17 FINANCIAL RESULTS 31 Construction FY17 For personal use only Overview Performance • Provides a project management, design, and construction service, FY16 FY17 predominantly in the infrastructure, defence, mixed-use, commercial % Operating EBITDA 23 24 and residential sectors EBITDA
Slide 59: Construction earnings
LENDLEASE – FY17 FINANCIAL RESULTS 32 Construction earnings For personal use only EBITDA ($m) EBITDA margins (%) FY16 FY17 FY16 FY17 3.7% 338.3 3.1% 288.1 2.8% 2.7% 2.3% 2.4% 231.8 201.4 1.4% 0.4% 105.4 - 56.4 31.7 (0.2) 5.5 (5.6) Australia Asia Europe Americas Total (1.7%) Australia Asia Europe Ame
Slide 60: Construction backlog
LENDLEASE – FY17 FINANCIAL RESULTS 33 Construction backlog For personal use only Backlog revenue ($b) Backlog revenue by region ($b)1 Asia Aus Services Europe 0.8 1.8 0.8 Aus Engineering 3.1 20.7 20.6 16.2 16.2 17.3 $20.6b 7.8 Americas 6.3 FY13 FY14 FY15 FY16 FY17 Aus Building Backlog revenue by cli
Slide 61: Construction new work secured / backlog
LENDLEASE – FY17 FINANCIAL RESULTS 34 Construction new work secured / backlog For personal use only New work secured revenue ($b) Australia Asia Europe Americas Total Jun-16 Jun-17 Jun-16 Jun-17 Jun-16 Jun-17 Jun-16 Jun-17 Jun-16 Jun-17 1 New work secured revenue Building 4.5 3.9 0.5 0.7 1.3 0.7 4.5
Slide 62: Construction backlog revenue by region
LENDLEASE – FY17 FINANCIAL RESULTS 35 Construction backlog revenue by region For personal use only Group ($b) Australia ($b) 13.2 (12.6) 5.9 (6.4) (0.7) (0.2) Book to bill1: 1:05 20.7 20.6 11.9 Book to bill1: 0.92 11.2 FY16 New work Revenue Other FY17 FY16 New work Revenue Other FY17 secured realise
Slide 63: Market opportunity for Engineering & Services in Australia
LENDLEASE – FY17 FINANCIAL RESULTS 36 Market opportunity for Engineering & Services in Australia For personal use only Engineering construction1 ~$75b2 Major transport construction1,4 ($b) Value of work done, inflation adjusted5 Projected composition1: • Transport ~$30b • Resources ~$15b Forecast 13
Slide 64: Australia: Major Projects – Building
LENDLEASE – FY17 FINANCIAL RESULTS 37 Australia: Major Projects – Building1,2 For personal use only Contract Value Project Location Contract Type3 Secured Date Completion Date4 Sector ($m) Crown Sydney Hotel Resort NSW MC 1,084.0 2015 2021 Hotel / Entertainment New Air Combat Capability - RAAF Willi
Slide 65: Australia: Major Projects – Engineering
LENDLEASE – FY17 FINANCIAL RESULTS 38 Australia: Major Projects – Engineering1,2 For personal use only Contract Contract Value Completion Project Location Secured Date Sector Type3 ($m) Date4 NorthConnex M1 / M2 Tunnel NSW D&C 1,283.0 2015 2020 Transport Northern Connector SA D&C 604.0 2016 2019 Tra
Slide 66: Asia and Europe: Major Projects – Building
LENDLEASE – FY17 FINANCIAL RESULTS 39 Asia: Major Projects – Building1,2 For personal use only Contract Contract Secured Completion Project Location Sector Type3 Value ($m) Date Date4 Paya Lebar Quarter Singapore GMP 794.9 2016 2020 Commercial & Residential Europe: Major Projects – Building1,2 Contr
Slide 67: Americas: Major Projects – Building
LENDLEASE – FY17 FINANCIAL RESULTS 40 Americas: Major Projects – Building1,2 For personal use only Contract Value Project Location Contract Type3 Secured Date Completion Date4 Sector ($m) Jacob K. Javits Convention Center New York LS 798.0 2017 2021 Government 520 Park Avenue New York GMP 398.9 2014
Slide 68: Investments
For personal use only Investments 41
Slide 69: Investments FY17
LENDLEASE – FY17 FINANCIAL RESULTS 42 Investments FY17 For personal use only Overview Performance • Owns and / or manages investments including a leading wholesale FY16 FY17 investment management platform and also the Group’s ownership % Operating EBITDA 37 36 interests in property and infrastructur
Slide 70: Investments earnings / ownership
LENDLEASE – FY17 FINANCIAL RESULTS 43 Investments earnings / ownership EBITDA by region ($m) EBITDA by activity ($m) For personal use only FY16 FY17 FY16 FY17 495.3 457.7 393.3 348.5 350 379 35.1 35.1 56.7 59.8 108 116 14.3 10.2 1 2 Australia Asia Europe Americas Total Ownership interests Operating
Slide 71: Funds Under Management (FUM)
LENDLEASE – FY17 FINANCIAL RESULTS 44 Funds Under Management (FUM) For personal use only Growth in FUM ($b) CAGR of 14.9% 26.1 23.6 21.3 - 16.3 15.0 FY13 FY14 FY15 FY16 FY17 FUM by asset class1 FUM by region1 Industrial Europe 3% 5% Asia 21% Commercial 45% $26.1b 50% $26.1b Australia Retail 74% 2% O
Slide 72: FUM by region
LENDLEASE – FY17 FINANCIAL RESULTS 45 FUM by region For personal use only Group ($b) Australia ($b) (0.1) (0.2) 0.7 0.3 (0.3) 0.8 2.1 2.0 26.1 19.3 23.6 16.5 FY16 Additions Divestments Net revals Other 1 FY17 FY16 Additions Divestments Net revals Other FY17 Europe ($b) Asia ($b) - - (0.1) 0.1 (0.1)
Slide 73: Major fund summary
LENDLEASE – FY17 FINANCIAL RESULTS 46 Major fund summary For personal use only Funds Management Platform1 ARIF7 1 ARIF7 3 APPFR2 APPFC3 APPFI4 LLITST5 LLOITST6 PPPL8 LLRP9 (Somerset) (Jem) Total assets ($ billion) 5.210 3.810 0.8 3.5 2.0 0.8 1.4 1.2 1.4 Gearing (%) 12.910 12.510 5.2 19.6 15.5 66.0 4
Slide 74: Retirement summary
LENDLEASE – FY17 FINANCIAL RESULTS 47 Retirement summary For personal use only Value drivers Investments3 ($m) Valuation drivers FY16 FY17 Long term growth rate 3.7% 3.6% Discount rate 13.3% 13.0% 1,711 Average length of stay – ILUs (years) 11.5 11.0 Number of established units 13,384 12,626 1,488 U
Slide 75: Investments
LENDLEASE – FY17 FINANCIAL RESULTS 48 Investments Market Value1 Market Value1 For personal use only Australia Co-Investments Lendlease Interest (%) June 2016 ($m) June 2017 ($m) Australian Prime Property Fund Retail 1.7 44.5 73.2 Lendlease International Towers Sydney Trust 15.0 380.3 411.5 Australia
Slide 76: Funds Under Management
LENDLEASE – FY17 FINANCIAL RESULTS 49 Funds Under Management For personal use only Market Value1 Market Value1 Australia FUM Fund Type Asset Class June 2016 ($b) June 2017 ($b) Australian Prime Property Fund Retail Core Retail 5.0 5.2 Lendlease International Towers Sydney Trust Core Commercial 3.2 3
Slide 77: Assets Under Management
LENDLEASE – FY17 FINANCIAL RESULTS 50 Assets Under Management For personal use only Market Value2 Market Value2 Australia Asset Class GLA sqm/‘000s1 June 2016 ($b) June 2017 ($b) Retail Retail 747.3 6.4 7.2 Market Value2 Market Value2 Asia Asset Class GLA sqm/‘000s1 June 2016 ($b) June 2017 ($b) Ret
Slide 78: Lendlease overview
For personal use only Lendlease overview 51
Slide 79: Vision: to create the best places
LENDLEASE – FY17 FINANCIAL RESULTS 52 Vision: to create the best places For personal use only Strategic framework Business model Competitive advantage Pillars of value
Slide 80: Globally diverse pipeline
LENDLEASE – FY17 FINANCIAL RESULTS 53 Globally diverse pipeline Our globally diverse pipeline provides long term earnings visibility1 For personal use only $49.3b Development $20.6b Construction $26.1bFUM $3.3b Investments pipeline backlog revenue Europe $8.0b Development pipeline Americas $0.8b Con
Slide 81: Global trends influencing our strategy
LENDLEASE – FY17 FINANCIAL RESULTS 54 Global trends influencing our strategy Lendlease leadership For personal use only By 2014, 54% of the world’s • $34.6b2 Urbanisation pipeline population were estimated to live in Urbanisation urban areas; this will reach 60% by • 13 major urbanisation projects3
Slide 82: Portfolio Management Framework summary
LENDLEASE – FY17 FINANCIAL RESULTS 55 Portfolio Management Framework summary For personal use only Business model • Integrated model synergies • Target EBITDA mix: 35-45% Development 30-40% Investments 20-30% Construction Capital allocation Target returns 2 • Focussed on Gateway Cities • Group ROE 1
Slide 83: Pillars of value – non-financial
LENDLEASE – FY17 FINANCIAL RESULTS 56 Pillars of value – non-financial For personal use only Safety Our Customers1,2 Percentage of operations without a critical incident in Group Lost Time Injury the last 12 months Frequency Rate c.280 MILLION MILITARY HOUSING FOR 1.8 90% RETAIL VISITORS c.125,000 A
Slide 84: Important notice
LENDLEASE – FY17 FINANCIAL RESULTS 57 Important notice For personal use only This document (including the appendices) has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) (Lendlease) in good faith. Neither Lendlease, nor any of its controlled entities including Lendleas